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Mass Affluent Target Propositions, 2021 Update - A Key for Sustainability and Growth

July 2021 | 42 pages | ID: M665DEEF4190EN
GlobalData

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Mass Affluent Target Propositions, 2021 Update - A Key for Sustainability and Growth

SUMMARY

Targeting the mass affluent demographic has worked its way up the priority list for banks and wealth managers in recent years. Some banks are not new to capturing this demographic with dedicated services, but in this digital transformation period competition for this lucrative (yet somewhat untapped) group is on the rise. Heightened competition and regulatory costs for wealth managers, low interest rate margins for banks, and new digital entrants keen to keep their business afloat are all reasons a host of players are targeting the mass affluent.

Using proprietary datasets, this report provides insight on the size of the current and future global mass affluent market. The report also examines how a selection of banks have targeted the mass affluent demographic, how their propositions have evolved over time, which services they offer, and where the strengths lie in their mass affluent propositions.

SCOPE
  • The global wealth market will increase by 8% in 2021, surpassing the $150tn mark.
  • With 2021 expected to be a more prosperous year than 2020, mass affluent investors will see their wealth grow by 6.4% in 2021, rising to just over $78tn.
  • On average, banks with the overall largest share in a market also tend to have the largest proportion of mass affluent individuals.
REASONS TO BUY
  • Understand the size of the mass affluent market opportunity, currently and over the next five years.
  • Gain insight on mass affluent investor behaviors.
  • Compare your mass affluent proposition to those of banks with the largest market share in selected countries.
Executive Summary
Market overview
Key findings
Critical success factors
Sizing and Forecasting
The global wealth market will increase by 8% in 2021, surpassing the $150tn mark
Mass affluent investors will see their wealth grow by 6.4% in 2021 to just over $78tn
Mass affluent investors maintain a diversified portfolio
Mass affluent thresholds vary across countries and banks
Targeting the mass affluent is key for sustainability and growth
Competitive Dynamics
Mass affluent strength is an outgrowth of a large market share
Niche mass affluent propositions are being launched at pace
The emerging affluent and new HNW individuals are not being neglected
HSBC Premier
DBS Treasures
Citigold
Barclays Premier
Bank of America’s Merrill Edge
Appendix
Abbreviations and acronym
Secondary sources
Further reading
About GlobalData
Contact Us

LIST OF TABLES

Table 1: Mass affluent proposition thresholds vary from bank to bank
Table 2: HSBC Hong Kong offers dedicated services for the mass affluent, HNW, and UHNW
Table 3: HSBC Premier services (Hong Kong)
Table 4: DBS offers three services, ranging from the mass affluent to the UHNW
Table 5: DBS Treasures (Singapore)
Table 6: Citibank targets the emerging affluent as well as mass affluent and HNW individuals
Table 7: Citigold US services
Table 8: Barclays provides dedicated services for mass affluent to UHNW individuals
Table 9: Barclays Premier services
Table 10: Bank of America offers multiple options for different affluent groups
Table 11: Bank of America Merrill Edge provides services for the mass market to the mass affluent

LIST OF FIGURES

Figure 1: The value of liquid assets for the mass affluent will surpass $90tn by 2025
Figure 2: The mass affluent market harbors the largest share of wealth across most regions
Figure 3: Mass affluent investors have diversified portfolios despite property holding a significant proportion
Figure 4: Mass affluent consumers prefer a wide range of providers for their investments
Figure 5: Most wealth managers agree that robo-advice can help reach untapped demographics
Figure 6: Net interest margins for banks have either stagnated or reduced over the past decade
Figure 7: Banks’ overall current account market share correlates with their mass affluent market share
Figure 8: HSBC leads in Hong Kong in terms of mass affluent market share
Figure 9: HSBC Premier customers have Premier status worldwide - something few competitors can match
Figure 10: DBS leads in terms of mass affluent current account market share in Singapore
Figure 11: The DBS Treasures website leads with a focus on technology
Figure 12: DBS Wealth Chat was launched in 2018
Figure 13: Citibank does not have a significant share of the mass affluent current account market in any country
Figure 14: Citigold provides a wide range of travel and lifestyle benefits
Figure 15: The UK mass affluent market is spread across multiple players
Figure 16: Barclays Premier offers exclusive services on top of its Personal Banking proposition
Figure 17: Bank of America holds over a quarter of the mass affluent current account market in the US
Figure 18: Merrill Edge offers three different digital investment and trading platforms, including a hybrid option


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